US: Campbell Soup Co sees Q1 beverage profits fall

By | 22 November 2012

  • Q1 beverage unit net sales fall by 5% to US$$189m
  • Operating profits remain flat at $30m
  • New acquisition Bolthouse Farms adds $171m in sales to Campbell Group
Campbell Soup Co posted a beverage profits decline

Campbell Soup Co posted a beverage profits decline

Campbell Soup Co's US beverages unit has posted a drop in first-quarter profits as demand for its V8 Splash failed to offset weaker brands.

Net sales dipped by 5% to US$189m in the three months to 28 October, the New Jersey company said on Tuesday (20 November). Operating profits over the same period stayed flat at $30m.

“Our core business in original V8 vegetable juice and V8 V-Fusion beverages continued to be challenged by slackening consumer demand,” said Campbell president & CEO Denise Morrison.

V8 Splash saw sales rise, Campbell said, without giving further details.

V8 vegetable juice also saw declines in full-year results released in September despite a 3% gain in net beverage sales over the previous year driven by demand for V8 V-Fusion.

Campbell's US beverages comprise V8 vegetable juices, V8 V-Fusion juices and juice beverages, V8 Splash juice beverages and Campbell’s tomato juice.

In July, Campbell announced the acquisition of vegetable juice-maker Bolthouse Farms for $1.55bn. Bolthouse, which also makes carrot sticks and other foodservice items, helped drive first-quarter operating profits in Campbell's foodservice unit and added $171m to the Campbell Group's overall sales.

Campbell saw overall net earnings reach $265m, an 8% drop on last year, the company said. Excluding acquisition-related charges, adjusted net earnings increased 5% to $279m.

Campbell's share price dropped 2% in Tuesday's early trading but has since rebounded slightly.

Expert analysis

Campbell Soup Company

Datamonitor's Campbell Soup Company - SWOT Analysis company profile is the essential source for top-level company data and information. Campbell Soup Company - SWOT Analysis examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.Campbell Soup Company (Campbell or ‘the company’) manufactures and markets foods and simple meals, including soups and sauces, baked snacks, and healthy beverages. The company operates in the US. It is headquartered in Camden, New Jersey and employs about 18,400 people. The company recorded revenues of $7,676 million during the financial year ended July 2010 (FY2010), an increase of 1.2% over FY2009. The operating profit of the company was $1,348 million in FY2010, an increase of 13.8% over FY2009. The net profit was $844 million in FY2010, an increase of 14.7% over FY2009.

Sectors: Company results, Soft drinks

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